Are you into fads? The dictionary defines a fad as a "temporary fashion," like polyester or bell-bottoms. But, before we go any further, let me state that this article is not about those kinds of fads.
The symptoms of FADD are quite apparent when the disease is in its advanced stages. There is a lack of attention to late notices as well as high balances within one's checking accounts. There also is an urgency to get "debt-free" while the counterproductive activity of becoming asset-free is occurring at the same time. Dollars in this late stage are very lethargic; they have no desire to earn any interest and are subject to excessive tax rates. The entire financial picture is quite bleak, and financial disaster is only moments away. Financial "shutdown" is the final act. Not a pretty picture.
Can anything be done to avert this final decree? Is there any salvation for this pathetic soul? I am here to tell you that I have discovered the cure for this disastrous disorder. It does require some work on the part of the afflicted individual, but the long-term prognosis is quite good, and a complete cure has been recorded in most who follow this regimen. It does, however, require a little more than taking two aspirin and calling me in the morning!
Where does one begin? The best place is with a review of your total financial program. This would include all assets and liabilities. When looking at the liabilities, it is not just a cursory look, but a complete examination of what these liabilities are. How are they structured? What are the terms? What are the interest rates? Once this information is gathered, an analysis is done to see if restructuring or refinancing these liabilities can improve the picture. One also must consider the tax implications. The bottom line is to improve cash flow. It is a big job, but it must be done if there is any hope of surviving and ridding oneself of this hideous disease.
The next step is to dig into the insurance portfolio to see what insurance is needed and whether it can be improved without increasing cost. Deductibles must be implemented, and a complete understanding of what one has must be the ultimate goal. This area is usually overlooked and can place a tremendous burden on the entire financial being. One needs to be in control of this area.
FADD and Money
The one thing that suffers the most from FADD is your money. It just lies around and exposes itself to taxes and potential creditors, and does not care if it is earning any return whatsoever. It's a pathetic sight. These dollars must be reactivated, energized and encouraged to be working 24/7 for your protection and benefit. A lazy, infected dollar is a dollar that can fade away. You cannot afford to have your dollars lounging around in your checking account, earning less than 2 percent, and having that interest subject to taxes as well.
It is so sad to find an individual suffering from FADD. Ask this person about their retirement plans, and you'll find that they have none! They are hoping to win the lottery or have a rich relative leave them a pot of money so they can survive later in life. They also believe in the tooth fairy, too! No retirement planning means no retirement, ever! This disorder gives them a false sense of security. It must be overcome, and some real thought and understanding into retirement plans can go a long way toward resolving this symptom permanently.
This is a hideous disorder that everyone is vulnerable to. You now know the signs of a person suffering from it. It is time to stand up and admit to it if you feel you are afflicted. If you have any of the symptoms mentioned above, you are suffering from FADD. There is hope for you if you take action now, before it is too late. Join the thousands who have sought the cure and now stand strong and in control of their finances. Your money will thank you, your family will thank you, and you will be glad that you did.
Click here for previous articles by Stanley Greenfield, RHU.